LSUS MHA 710 ECONOMICS EXAM 1 NEWEST ACTUAL EXAM QUESTIONS WITH CORRECT & VERIFIED ANSWERS (DETAILED ANSWERS) ALREADY GRADED A+ 100% GUARANTEED TO PASS CONCEPTS!!!

LSUS MHA 710 ECONOMICS EXAM 1 NEWEST ACTUAL EXAM QUESTIONS WITH CORRECT & VERIFIED ANSWERS (DETAILED ANSWERS) ALREADY GRADED A+ 100% GUARANTEED TO PASS CONCEPTS!!! Which of the following represents the largest category of health care spending in the United States? - Correct Answer Hospital Care" "The direct effect of a shortage of hospital beds in a hospital services market is: - Correct Answer Upward pressure on the price of a hospital stay." "Suppose you are a consultant advising the U.S. government on reducing national health care spending. Assuming that providers will accommodate patient desires, what advice could you offer concerning the implementation of a price ceiling? - Correct Answer Total spending may rise if providers intensify & create new technology for the uncontrolled sector." "How different is medical care from other commodities? Arrow (1963) based his thesis on a number of characteristics that contribute to the unique nature of medical care. All of the following characteristics were listed by Arrow, except: - Correct Answer Preponderance of not-for-profit providers." "All of the following will cause a shift in the medical care supply curve, except: - Correct Answer A change in the percentage of the population with health insurance." "Assuming providers will accommodate patient desires, what effect would a binding price ceiling have on the health care market? - Correct Answer Price will decrease to adhere to the price ceiling & quantity will increase." "Suppose the U.S. Food & Drug Administration restricts the amount of prescription opiates produced & sold in the U.S. market. What is the likely effect on the market for drugs used to control chronic pain the United States? - Correct Answer The price of prescription opiates will increase & the quantity consumed will decrease." "The following graph depicts the market for CT scanners in the United States: Assume an initial equilibrium at D1 and S1 with a price of $1.20 million per machine. If the government places a $100,000 excise tax on each new scanner sold, the new equilibrium price will be: - Correct Answer less than $1.30 million." "Suppose robotic technology improves the results of abdominal surgery—less time to perform the surgery, faster recovery times, and fewer mistakes. What is the impact on the market for abdominal surgery using this new technology? - Correct Answer Demand for robot-assisted surgery will increase, & prices will rise." "Suppose you are a politician being criticized in a debate for your commitment to reducing the growth of medical spending. Which of the following is the most appropriate response? - Correct Answer Reducing wasteful heath care spending could provide additional funding to the education sector." "Assuming that a market is perfectly competitive & in a state of equilibrium, which of the following statements is always true when the price changes? - Correct Answer Social welfare decreases." "Assuming that providers will only accommodate patient desires up to a point, what effect would a binding price ceiling have on the health care market? - Correct Answer Quantity of health care supplied would fall." "Even in the U.S., approximately, what percent of medical care is purchased through insurance, government programs or other third party insurers? - Correct Answer 90" "In the nation of Pavlova, a significant portion of the population suffers from breathing difficulties later in life. Pavlova Medical produces the only prescription drug that is effective in treating the condition. Which of the following terms best describes the situation in the market? - Correct Answer Monopoly." "Which of the following is NOT a potential result of ever-increasing health care pricing? - Correct Answer Reduced incentives for innovation." "If price elasticity is known to be -0.15, what happens to quantity when the price of services at Urban General falls by 10 percent? - Correct Answer Quantity demanded increases by 1.5 percent." "What term is used when physicians know more about alternative treatments than their patients do? - Correct Answer Asymmetric information." "A health insurance arrangement where individuals have access to health care in exchange for a set premium is called: - Correct Answer Third-party payment system." "If a hospital is experiencing economies of scale: - Correct Answer Its average cost curve is negatively sloped as output increases." "Which of the following does NOT contribute to wasteful spending in medical care? - Correct Answer Price transparency." "Which of the following statements is based on positive analysis? - Correct Answer High health care prices are one of the primary reasons that the United States spends more on medical care than other countries." "Which of the following is NOT considered to be a factor in the recent slowing of health care spending? - Correct Answer Growing U.S. gross domestic product (GDP)." "If two women receive the same hip replacement procedure at a hospital, but are charged differently, it is an example of: - Correct Answer Price discrimination." "Which of the following is NOT a personal health expenditure? - Correct Answer Program administration." "Inoculation programs against certain disease such as small pox, polio, & whooping cough create: - Correct Answer Positive externalities in consumption." "The cost to society resulting from taxation to finance government spending is called: - Correct Answer deadweight loss." "In the 1960s, individuals paid for the majority of their medical care out of pocket. Increased insurance coverage, both private & public, displaced out-of-pocket spending as the primary source of payment. By 2020, what was the forecasted percentage amount of health care spending paid by individuals? - Correct Answer 10.4 percent" "Supply curves are positively sloped because of: - Correct Answer The increasing opportunity cost of resources." "All of the following will change the demand for office visits to a physician, except: - Correct Answer A change in the price of an office visit." "Self-insurance refers to the practice of setting aside funds to pay for medical care expenses instead of paying premiums to an insurance company. Approximately, how many of all employees who participate in group insurance plans work for firms that self-insure? - Correct Answer Two-thirds." "Since ACA was passed in 2010, there have been many efforts to have the bill thrown out or at least watered down. Most attempts have been unsuccessful. However, one key elements of ACA was successful, which was to: - Correct Answer Eliminate the tax penalty for the individual mandate." "The optimal level of output may be defined as that level of output where: - Correct Answer The marginal benefit of the last unit purchased equals its marginal cost." "An inferior good: - Correct Answer Causes the demand curve to shift to the left when income rises." "Suppose the demand curve for medical care services is perfectly inelastic. What will happen to the equilibrium price & quantity if supply increases? - Correct Answer Price will fall & quantity will stay the same." "The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones with sound waves) is: - Correct Answer Defined by the next best use of the money invested in the equipment." "Since 1950, U.S. health care spending has grown from an average of 4.5 percent of GDP to an estimated forecast of _____ percent of GDP in 2020. - Correct Answer 18" "Suppose the market for hospital outpatient treatment is in equilibrium when a price ceiling is set below the equilibrium price. What do you expect to happen? - Correct Answer A shortage will develop." "The dead-weight loss from an excise tax: - Correct Answer Is caused by a shift in consumer preferences when the tax is raised." "According to Adam Smith's terminology, the "invisible hand" refers to: - Correct Answer Market forces working through the price mechanism."